2017 (3) TMI 772

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....ithout payment of Central Excise duty by availing benefit of exemption Notification No.6/2006-CE dated 01.03.2006 on the strength of a Certificate issued by the District Magistrate, Nadia, West Bengal for execution of drinking water supply project. The same was duly reflected in the ER-1 returns filed for the month of October, 2008. It is the case of the appellant that they were under the bona fide belief that such supplies were covered by Rule 6(6) of the Cenvat Credit Rules, 2004. Hence they did not comply with the provisions of Rule 6(2) and Rule 6(3) of the Cenvat Credit Rules, 2004. On being pointed out by the audit, the appellant paid an amount equal to 10% of the total price of the exempted goods i.e. Rs. 3,08,990/- by debiting RG-23....

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....ation Cess was not to be calculated on the amount of duty. Ld.Counsel further submits that the penalty calculated @ 25% of the amount of Rs. 3,18,260/- as confirmed vide the Order-in-Original was paid within 30(thirty) days of receipt of the said Order-in-Original. The only reason to file appeal before the lower appellate authority against Order-in-Original was the demand of Education Cess and Higher Education Cess on the amount of 10% paid in compliance with the provisions of Rule 6(3)(i) of Cenvat Credit Rules, 2004 and hence question of Education Cess and Higher Education Cess does not arise as it is not a duty of excise. 3. The ld.Commissioner(Appeals) accepted the contention of the appellant regarding non-applicability of Cess on th....